Abercrombie & Fitch Co. (NYSE:ANF) Extends Fall On Earnings

Abercrombie & Fitch Co. (NYSE:ANF) shares fell in the early hour after the company yesterday announced its first quarter results.The shares of the company declined 4.63% to $37.67 after the company’s first quarter earnings slumped owing to a decline in the same-store sales amid weak European sales.
The company had recorded strong sales over the past two years, primarily due to a growth in its international business but more promotional pricing and increased raw material costs have challenged its bottom line and margins. Gross margin fell to 62.6% from 65%.

The company reported first quarter profit of $2.99 million, or $0.03 a share, as compared to $25.1 million, or $0.28 a share, in the same quarter a year earlier. Year-ago earnings from continuing operations were $0.29 a share. Sales jumped 10% to $921.2 million. Analysts had most recently forecasted earnings of $0.02 a share on revenue of $952 million.

Total U.S. sales increased 1% to $644.3 million, while International sales jumped 42% to $277 million.
Moreover, the company also increased its existing share repurchase program by 10 million shares, raising the number of authorized shares available to 12.9 million.Going ahead, the company reconfirmed its full-year earnings guidance, but now expects a mid-single digit percentage decline in same-store sales.Additionally, on May 14, 2012, according to a proxy filed with the Securities and Exchange Commission, the company’s Chief Executive Michael Jefferies' compensation package more than doubled last year, to $48 million. Jefferies, who also holds the position of chairman at the company, received a base salary of $1.5 million, the same as the prior year. His stock option awards and stock appreciation rights were $43 million, compared with $14 million the prior year.The company today made a new 52 week low at $37.59. In the last one year, the shares of the company has plunged over 48%.